Italy not swayed by EU Commission bullying

Italy is not backing down in the scuffle over their 2019 budget with the European Commission.

The EC told Rome to significantly change their draft budget plan, in which Italy runs a deficit of 2.4 per cent of GDP next year, claiming it could open an infringement procedure for failing to respect the Stability and Growth Pack.

Economy Minister Giovanni Tria sent the EC a revised version of the government’s budgetary plan on Tuesday with a letter on the strategy being adopted.

The plan to run a 2.4 per cent deficit remains. Tria’s letter states that there is a “safeguard cushion” which will kick in if the target of 1.5% growth is not reached in 2019, stating that quick corrections on spending and revenues will be made if there is a deviation.